A common question that we are receiving is - How do the terms and costs of these loans differ from that of a normal FHA or conventional loan?
Obviously, it's important to acknowledge that everyone's terms will vary depending on qualification. Things like credit score, down payment, etc., impact one's terms. For a direct quote, give us a call and we will be happy to get into the specifics of you scenario. But for the sake of simplicity, let's speak in general terms.
- Regarding terms: We offer 30 year fixed and 15 year fixed loans. Most of our clients walk into this process looking for a 30 year fixed mortgage. They're remodeling a home that they anticipate to be a long term home for them.
- Regarding costs: The closing costs for renovation loans can be slightly more expensive upfront, but typically less than $10,000 more expensive at close. After that, interest rates are pretty similar to what one would qualify for on a standard conventional loan. Again - reach out to us and we can let you know what your individual scenario might look like. Scenarios will vary.
Remember, these are amazing loans. They may be a few thousand dollars more expensive upfront, but the buyer ultimately gets to borrow tens of thousands of dollar, or hundreds of thousands of dollars to renovate the home, AND roll it into the conventional loan.
Again, everyone's loan terms and pricing are based on their unique scenario. So for an accurate quote of what you would qualify for, hit the start renovating button and find out more!